Southeast Asian Superapp Grab to Go Public in Partnership with Altimeter.
MANews-(C)2009-2021
Singapore-based superapp platform Grab Holdings Inc plans to go public in the US in partnership with US-based investment firm Altimeter Growth Corp. (NASDAQ: AGC) in what is expected to be the largest-ever US equity offering by a Southeast Asian company, the company said.
The combined company expects its securities will be traded on NASDAQ under the symbol "GRAB" in the coming months.
The proposed transactions value Grab at an initial pro-forma equity value of approximately USD 39.6bn at a PIPE size of more than USD 4bn and will provide Grab with approximately USD 4.5bn in cash proceeds. Grab is a superapp dedicated to serving everyday needs and everyday entrepreneurs.
It offers services across mobility, deliveries, financial services and more, in an all-in-one app.
Grab posted GMV of approximately USD 12.5bn in 2020, surpassing pre-pandemic levels and more than doubling from 2018.
The company is also currently the category leader in Southeast Asia for its core verticals5, accounting for approximately 72% of total regional GMV for ride-hailing, 50% of total regional GMV for online food delivery and 23% of regional TPV for digital wallet payments in 2020.
At the same time, the company has made significant strides towards profitability, with a key focus on building a resilient business and delivering sustainable growth, achieving positive segment EBITDA in mobility across all markets, and positive segment EBITDA in deliveries in 5 out of 6 countries.
The combined company is expected to have an equity value on a pro-forma basis of approximately USD 39.6bn.
At closing, the combined company is expected to receive approximately USD 4.5bn in cash proceeds, including more than USD 4bn from a fully committed PIPE offering that was upsized due to significant investor interest.
Furthermore, Altimeter has also committed up to USD 500m to a contingent investment to be equal to the aggregate dollar amount of redemptions from Altimeter Growth's shareholders.
The PIPE was led by funds managed by Altimeter Capital Management, LP which committed USD 750m, with participation from funds and accounts managed or advised by BlackRock, Counterpoint Global (Morgan Stanley Investment Management), and...
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